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Sandhill Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2022, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $19,600, direct labor $11,760, and manufacturing overhead $15,680. As of January 1, Job 49 had been completed at a cost of $88,200 and was part of finished goods inventory. There was a $14,700 balance in the Raw Materials Inventory account on January 1. During the month of January, Sandhill Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $119,560 and $154,840, respectively. The following additional events occurred during the month. 1. 2. 3. 4. Purchased additional raw materials of $88,200 on account. Incurred factory labor costs of $68,600. Incurred manufacturing overhead costs as follows: depreciation expense on equipment $11,760; and various other manufacturing overhead costs on account $15,680. Assigned direct materials and direct labor to jobs as follows.

Sandhill Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2022, Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $19,600, direct labor $11,760, and manufacturing overhead $15,680. As of January 1, Job 49 had been completed at a cost of $88,200 and was part of finished goods inventory. There was a $14,700 balance in the Raw Materials Inventory account on January 1. During the month of January, Sandhill Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $119,560 and $154,840, respectively. The following additional events occurred during the month. 1. 2. 3. 4. Purchased additional raw materials of $88,200 on account. Incurred factory labor costs of $68,600. Incurred manufacturing overhead costs as follows: depreciation expense on equipment $11,760; and various other manufacturing overhead costs on account $15,680. Assigned direct materials and direct labor to jobs as follows.

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Sandhill Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2022. Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $19,600, direct labor $11,760, and manufacturing overhead $15,680. As of January 1, Job 49 had been completed at a cost of $88,200 and was part of finished goods inventory. There was a $14,700 balance in the Raw Materials Inventory account on January 1. During the month of January, Sandhill Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $119,560 and $154,840, respectively. The following additional events occurred during the month. 1. 2. 3. 4. (d1) Purchased additional raw materials of $88,200 on account. Incurred factory labor costs of $68,600. Incurred manufacturing overhead costs as follows: depreciation expense on equipment $11,760; and various other manufacturing overhead costs on account $15,680. Assigned direct materials and direct labor to jobs as follows. (1) Job No. Direct Materials (2) 50 51 (3) 52 $9,800 38,220 29,400 No. Account Titles and Explanation 5. Assigned indirect materials of $16,660 and indirect labor of $19.600. Prepare the journal entries to record the assignment of (1) raw materials, (2) factory labor, and (3) manufacturing overhead costs to production. In assigning manufacturing overhead costs, use the overhead rate calculated in (a). (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Work in Process Inventory Manufacturing Overhead Raw Materials Inventory Factory Labor Work in Process Inventory Manufacturing Overhead Direct Labor Work in Process Inventory $4,900 Manufacturing Overhead 24,500 19,600 Debit Credit
Transcribed Image Text:Sandhill Company uses a job order cost system and applies overhead to production on the basis of direct labor costs. On January 1, 2022. Job 50 was the only job in process. The costs incurred prior to January 1 on this job were as follows: direct materials $19,600, direct labor $11,760, and manufacturing overhead $15,680. As of January 1, Job 49 had been completed at a cost of $88,200 and was part of finished goods inventory. There was a $14,700 balance in the Raw Materials Inventory account on January 1. During the month of January, Sandhill Company began production on Jobs 51 and 52, and completed Jobs 50 and 51. Jobs 49 and 50 were sold on account during the month for $119,560 and $154,840, respectively. The following additional events occurred during the month. 1. 2. 3. 4. (d1) Purchased additional raw materials of $88,200 on account. Incurred factory labor costs of $68,600. Incurred manufacturing overhead costs as follows: depreciation expense on equipment $11,760; and various other manufacturing overhead costs on account $15,680. Assigned direct materials and direct labor to jobs as follows. (1) Job No. Direct Materials (2) 50 51 (3) 52 $9,800 38,220 29,400 No. Account Titles and Explanation 5. Assigned indirect materials of $16,660 and indirect labor of $19.600. Prepare the journal entries to record the assignment of (1) raw materials, (2) factory labor, and (3) manufacturing overhead costs to production. In assigning manufacturing overhead costs, use the overhead rate calculated in (a). (List all debit entries before credit entries. Credit account titles are automatically indented when amount is entered. Do not indent manually.) Work in Process Inventory Manufacturing Overhead Raw Materials Inventory Factory Labor Work in Process Inventory Manufacturing Overhead Direct Labor Work in Process Inventory $4,900 Manufacturing Overhead 24,500 19,600 Debit Credit
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